9911796707
TMI Blog1995 (1) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... the finding portion of the order of the lower authority which is reproduced below : "I have considered the submissions. It is seen that the inputs, viz. PVC resin, plasticizer, stabilizer, modifiers, pigments etc. are used in the manufacture of PVC ink falling under sub-heading 3215.00. The appellants' final products for the purpose of MODVAT are PVC sheetings, sheet, film, foil etc. falling under sub-headings 3920.11 and 3920.12. The PVC inks are used for printing PVC sheeting, sheet, film etc. It is the appellants' submission that the inputs used for PVC inks and PVC sheetings, sheet, film, etc. are one and the same. In other words, by using the same inputs the appellants manufacture PVC inks as well as PVC sheeting, sheet, film etc. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7D(2). In the appellants' case, PVC ink was manufactured separately. When this being the case, the duty paid on the input used in the manufacture of PVC ink cannot be utilised for payment of duty on the final product, PVC sheetings, sheet, film, foil etc. The appeal is rejected". 2. The learned original authority also examined the issue in the same light. 3. The appellants have sought for decision on the appeal on merits taking into consideration their written submissions in the appeal memorandum. In the grounds of appeal, the appellants have urged that the lower appellate authority was in error to have held that PVC ink cannot be considered as an intermediate product since it is not one line production under Rule 57D(2). They have u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vo examination in the light of the judgment of the Madras High Court. 5. We have carefully considered the pleas made by both the sides. We observe that the reason for which MODVAT credit has been denied in respect of inputs which have been used for the manufacture of inks which are finally used for printing of PVC film/sheeting manufactured by the appellants as set out in the order of the learned lower appellate authority is that the PVC inks did not emerge as an intermediate product while manufacturing the PVC sheets. We observe that this situation is covered by the ruling of the Hon'ble High Court of Madras in the case of Ponds (India) v. CCE reported in 1993 (63) E.L.T. 3. Following the ratio of the ruling of the Hon'ble High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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